Kiwi Income Property Trust benefits from bull run

The country's largest listed landlord added $102 million to the value of its real estate holdings, taking its portfolio to $1.4 billion.

Australian-managed Kiwi Income Property Trust has reaped rich rewards from a five-year bull run in commercial and retail real estate.

Most of the value increases were from Kiwi's extensive commercial portfolio, which accounted for 70 per cent of the gains. The office portfolio includes the 40-level Vero Centre on Shortland St in Auckland. That tower, worth about $200 million when it was completed four years ago, is now worth $256 million. Kiwi's valuers found its value rose by $30 million in the last year alone.

The trust's bluechip high-rise Wellington office block, the Majestic Centre on Willis St, is worth $93 million, up by $11 million in the March year.

Kiwi's shopping centres also showed big revaluation gains. The best performer was Northlands in Papanui, Christchurch, now worth $230 million, up in value by $15 million in the March year. North City in Porirua is now worth $117 million, up $10 million.

Angus McNaughton, chief executive of the trust's manager, said the gains reflected the sound state of the property market and the superior quality of the trust's portfolio.

Kiwi has a 99.3 per cent occupancy rate in its offices and a 99.6 per cent rate in its shopping centres.

Not all listed property entities have done well from revaluations. Under the new management of St Laurence Group, Christchurch-based National Property Trust devalued its portfolio by $17.5 million in February. But Property For Industry and Calan Healthcare Properties Trust booked big unrealised or paper gains in the past few months.